Agents’ Sales Drop While ByTheOwner.com Sales Increase
- 4.04.2008
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An article in today’s Toronto Star reports that MLS sold properties in the GTA dropped 22% in March. This is in addition to an 11% drop in February, and a 2% drop in January. So far this year MLS sales in the GTA have dropped approximately 13%. Some of the reasons given for the drop in MLS sales include weather, the new land transfer tax, and the economy.
On the contrary, ByTheOwner.com’s sold properties in the GTA have increased 66% so far this year: Sold properties increased from 91 in the first quarter of 2007 to 151 during the first quarter of 2008.
Selling privately allows owner much more freedom in the stable market. For example, if you consider two similar homes being sold for $300,000, one being sold ByTheOwner and the other with an agent: The ByTheOwner.com seller is able to accept $300,000 and KEEP $300,000. However, the home being sold with the agent for $300,000 would result in the owner keeping less than $285,000 (assuming 5% commission). The ByTheOwner seller would even be able to sell their property for $295,000 and still take home $10,000 more than the home sold with an agent.
